Slide 1: Nilfisk Q2 Interim Report 2019
Nilfisk Q2 Interim Report 2019 Webcast presentation
Slide 2: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 2 Nilfisk Q2 Interim Report 2019
Slide 3: Q2 2019: Performance negatively affected by EMEA
Q2 2019: Performance negatively affected by EMEA Financial highlights • Weakening economic conditions in EMEA affected the performance of Nilfisk in Q2 - led to an adjustment of the full-year guidance June 26 • Organic growth of -1.1% in the branded professional business, negatively impacted by EMEA
Slide 4: Response to weakening economic conditions
Response to weakening economic conditions Prudency and continued strategic execution • Short term prudency – Immediate actions incl. hiring freeze, travel restrictions etc. – Short term cost reductions with an impact in 2019 – Improve cash generation with focus on working capital and CAPEX • Re-prio
Slide 5: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 5 Nilfisk Q2 Interim Report 2019
Slide 6: Branded professional business
Branded professional business EMEA Americas APAC • Weakening economic conditions • Low growth in Americas • Negative organic growth to a large extent impacting Germany, the Nordic region and driven by Australia the industrial segment in general • Some degree of timing effect between Q1 and Q2 2019.
Slide 7: Other business units
Other business units Consumer Private label • Challenging market conditions in the • Organic growth in line with expectations high pressure washer market throughout the high season • Gross margin up due to mix effects • Gross margin down by 3.3 percentage points impacted by slightly higher productio
Slide 8: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 8 Nilfisk Q2 Interim Report 2019
Slide 9: Revenue and organic growth development
Revenue and organic growth development Revenue, mEUR Comments - 9.1% • Total reported revenue down by 9.1% vs. Q2 2018 +1.5% -16.6 – Divestments impact of 6.2% 2.7 -6.2% -12.0 – Positive impact from FX of 1.5% due to USD 284.5 258.6 -4.4% – Organic growth of -4.4% driven mainly by Consumer and EMEA
Slide 10: Operating performance
Operating performance Operating performance contribution, mEUR Comments -3.2 35.6 11.1 • Operating performance down by 3.2 mEUR driven by 32.4 lower revenue 4.6 3.2 • Operating margin equal to last year at 12.5% • Gross margin improvement off-set by higher operating cost ratio Operating Revenue impa
Slide 11: Gross margin and overhead costs
Gross margin and overhead costs Gross margin Comments + 1.3% • Gross margin improvement of 1.3 percentage points 44.1% driven by: – Simplification initiatives: divestments, production 42.8% consolidation and pruning of product platforms – Procurement benefits – Pricing – Mix effects – One-off effect
Slide 12: Overhead cost development
Overhead cost development Comments 95.1 • Significant cost base reduction driven by divestments -0.7 -5.8 +0.7 90.5 • Additional savings from cost saving program and +1.1 blueprint roll-out +2.7 • Investments in the future mainly include: -1.0 -1.6 – Digital Services and Autonomous Solutions – IT su
Slide 13: Balance sheet and cash flow
Balance sheet and cash flow EUR million Q2 2019 Q2 2018 Change Comments Inventories 184.1 199.6 -15.5 • NWC reduced by 9.8 mEUR mainly driven by divestments and consolidation of production footprint Receivables 238.2 249.6 -11.4 Payables 225.6 238.2 -12.6 • CAPEX slightly lower than last year Report
Slide 14: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 14 Nilfisk Q2 Interim Report 2019
Slide 15: Outlook for 2019 maintained
Outlook for 2019 maintained Organic growth EBITDA margin Flat organic growth In the Nilfisk branded professional business 13.7% - 14.2% EBITDA margin before special items Incl. expected IFRS 16 impact of 2.7 percentage points -10% to -15% Organic growth in the consumer business Flat organic growth I
Slide 16: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 16 Nilfisk Q2 Interim Report 2019
Slide 17: Q&A
Q&A 17 Nilfisk Q2 Interim Report 2019
Slide 18: Forward-looking statements
Forward-looking statements This presentation and related comments contain forward-looking statements. Such statements are subject to many uncertainties and risks, as various factors, of which several are beyond Nilfisk Holding’s control, may cause that the actual development and results differ mater